A group of people were seen outside the New York Stock Exchange in New York on Monday, April 7, 2025. (Photo by Seth Wenig/AP)
Canada’s main stock market climbed on Tuesday, thanks to rising energy and battery metal shares. At the same time, U.S. stock markets also moved upward, as investors kept a close eye on ongoing U.S.-China trade talks. The optimism surrounding these discussions helped push markets higher across the board.
The S&P/TSX Composite Index ended the day up by 50.51 points, closing at 26,426.31. In the U.S., the Dow Jones Industrial Average rose 105.11 points to finish at 42,866.87, the S&P 500 went up 32.93 points to 6,038.81, and the Nasdaq Composite added 123.75 points, ending at 19,714.99.
According to Sadiq Adatia, Chief Investment Officer at BMO Global Asset Management, the markets are benefiting from improved dialogue between Washington and Beijing. “A couple of months back, things were tense between the two nations,” he said. “Now they’re at the table again, and nobody’s storming off — that usually signals some kind of progress.”
Last month, the U.S. and China agreed to pause most of their heavy tariffs for 90 days, offering a temporary relief in the trade war. As they continue talks this week, investors are hopeful this could lead to reduced tariffs and more stable trade conditions.
Adatia added, “The market craves clarity. And lower tariffs would ease pressure on businesses and consumers alike, making it easier to compete globally.”
However, not all outlooks are rosy. The World Bank warned on Tuesday that ongoing trade disputes are likely to slow global economic growth. They’ve cut their 2025 forecast to 2.3%, down from 2.8% in 2024. The U.S. economy, in particular, is expected to grow at half the pace it did last year, with rising trade barriers being a key reason.
Still, there is room for hope in Canada. Behind-the-scenes talks are reportedly underway between U.S. President Donald Trump and Canadian Prime Minister Mark Carney. Adatia said, “If Trump takes a softer stance on trade, that’s a win for Canada. So far, things haven’t escalated, and that’s a good sign.”
He also pointed out that lowering tariffs on aluminum and steel would be a significant benefit for Canada, although no formal changes have been announced yet.
Meanwhile, the Canadian dollar stayed steady at 73.08 cents U.S.
Crude oil for July delivery dipped 31 cents to US$64.98 per barrel, and natural gas slipped 10 cents to US$3.53 per mmBTU.
Gold fell by US$11.50 to US$3,343.40 per ounce, while copper dropped three cents to US$4.90 a pound.
